NDLI: Brahmani River Pellets Limited Vs. Kamachi Industries Limited

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Discussed Arbitration and Conciliation Act ss.2(1)(e) 2(2) “Seat” “Venue” and 20 Words & Expressions 1996 11(6)
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Arbitration and Conciliation Act, 1996 (26 of 1996)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Arbitration and Conciliation Act, 1996 – ss.2(1)(e), 2(2), 11(6), and 20 – Appellant entered into an agreement with the respondent for sale of 40,000 WMT (Wet Metric Tonne) of Iron Ore Pellets on FOB terms – Dispute arose regarding the price and payment terms – Respondent claimed damages alleging that it had to procure the Iron Ore Pellets from other sources at higher rates– Appellant denied liability to pay damages – Respondent filed petition u/s.11(6) before the Madras High Court for appointment of the sole arbitrator – Appellant challenged the jurisdiction of the High Court on the ground that the parties agreed that Seat of arbitration will be Bhubaneswar and therefore, only the Orissa High Court has exclusive jurisdiction to appoint the arbitrator – High Court vide impugned order appointed former judge of the Madras High Court as the sole arbitrator – On appeal, held: As per s.2(2), Part-I would apply to all arbitration where the place of arbitration is in India – s.2(1)(e) defines “court” with reference to Part-I of the Act and would govern the place of arbitration – Further, u/s.2(1)(e), if the “subject-matter of the suit” is situated within the arbitral jurisdiction of two or more courts, the parties can agree to confine the jurisdiction in one of the competent courts – Under s.20, parties are free to agree on the place of arbitration – Party autonomy has to be construed in the context of parties choosing a court which has jurisdiction out of two or more competent courts having jurisdiction – Where the contract specifies the jurisdiction of the court at a particular place, only such court will have the jurisdiction to deal with the matter – In the present case, the parties agreed that the “venue” of arbitration shall be at Bhubaneswar – Considering the agreement of the parties having Bhubaneswar as the venue of arbitration, the intention of the parties is to exclude all other courts – Non-use of words like “exclusive jurisdiction”, “only”, “exclusive”, “alone” is not decisive and does not make any material difference – When the parties agreed to have the “venue” of arbitration at Bhubaneswar, the Madras High Court erred in assuming the jurisdiction u/s.11(6) – Since only Orissa High Court will have the jurisdiction to entertain the petition filed u/s.11(6), the impugned order is set aside – Parties at liberty to approach the Orissa High Court seeking appointment of the arbitrator. Words & Expressions – “Seat”, “Venue” – Discussed – Arbitration and Conciliation Act, 1996.
Judge	Hon'ble Ms. Justice R. Banumathi
Neutral Citation	2019 INSC 817
Petitioner	BRAHMANI RIVER PELLETS LIMITED
Respondent	KAMACHI INDUSTRIES LIMITED
SCR	[2019] 9 S.C.R. 1140
Judgement Date	2019-07-25
Case Number	5850

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